Question 1

Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal.

Accepted Answer

A) True 
 B)False

Question 2

In applying the stakeholder model of business ethics, only the interests of important constituencies affected by an action need to be satisfied.

Accepted Answer

A) True 
 B)False

Question 3

The ethical category of integrity and truthfulness is best expressed as maintaining one's values and principles:

Accepted Answer

A)  so long as profits can be maintained. 
B)  so long as the costs are not great. 
C)  unless deviating will go unnoticed. 
D)  despite the consequences or costs. 
A)  so long as profits can be maintained. 
B)  so long as the costs are not great. 
C)  unless deviating will go unnoticed. 
D)  despite the consequences or costs.

Question 4

Ethical violations can cause lasting detriment to a company's ability to do business through impacts on the company's reputation.

Accepted Answer

A) True 
 B)False

Question 5

The importance of trust as a fundamental principle in capitalism is illustrated by expectations that:

Accepted Answer

A)  investors will be able to earn a return on their investments. 
B)  employees may be discharged at any time for any reason without notice. 
C)  litigation is inevitable because parties to agreements usually break promises. 
D)  insider trading proves that the economic system underlying business is flawed. 
A)  investors will be able to earn a return on their investments. 
B)  employees may be discharged at any time for any reason without notice. 
C)  litigation is inevitable because parties to agreements usually break promises. 
D)  insider trading proves that the economic system underlying business is flawed.

Question 6

John Harrington operates a business that almost always hires skilled workers who are college graduates; currently, however, his business does have a part-time opening for an unskilled worker. Harrington is considering hiring an uneducated welfare recipient instead of a student from the local university. Apply the "Guidelines for Analyzing a Contemplated Action" to this problem.

Accepted Answer

From the decision-maker's point of view,

Question 7

Entitlement theory says that everyone has rights but it is up to the government to protect those rights.

Accepted Answer

A) True 
 B)False

Question 8

Positive law:

Accepted Answer

A)  is enacted by government authority. 
B)  ensures that businesses will follow a high level of ethical standards. 
C)  is also known as natural law. 
D)  is moral-based law. 
A)  is enacted by government authority. 
B)  ensures that businesses will follow a high level of ethical standards. 
C)  is also known as natural law. 
D)  is moral-based law.

Question 9

Civil disobedience is the remedy natural law proponents use to change positive laws.

Accepted Answer

A) True 
 B)False

Question 10

Mortgages, security interests, and surety relationships are legal mechanisms created primarily to promote stability and flexibility in trade.

Accepted Answer

A) True 
 B)False

Question 11

All of the following situations reflect a possible conflict of interest except:

Accepted Answer

A)  A CEO offers a contract to a friend without checking competing bids. 
B)  A CEO hires a relative for a company position although another candidate is more qualified. 
C)  A manager buys a piece of realty that would be suitable for a planned company project. 
D)  A CEO takes a cut in pay to decrease company overhead. 
A)  A CEO offers a contract to a friend without checking competing bids. 
B)  A CEO hires a relative for a company position although another candidate is more qualified. 
C)  A manager buys a piece of realty that would be suitable for a planned company project. 
D)  A CEO takes a cut in pay to decrease company overhead.

Question 12

Rights theory includes all of the following except:

Accepted Answer

A)  is also known an entitlement theory. 
B)  states that everyone has a set of rights. 
C)  believes that it is the government's responsibility to protect our rights. 
D)  using others in a way that gives you a one-sided benefit. 
A)  is also known an entitlement theory. 
B)  states that everyone has a set of rights. 
C)  believes that it is the government's responsibility to protect our rights. 
D)  using others in a way that gives you a one-sided benefit.

Exam 3: Business Ethics, Social Forces, and the Law

Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal.

In applying the stakeholder model of business ethics, only the interests of important constituencies affected by an action need to be satisfied.

The ethical category of integrity and truthfulness is best expressed as maintaining one's values and principles:

Ethical violations can cause lasting detriment to a company's ability to do business through impacts on the company's reputation.

The importance of trust as a fundamental principle in capitalism is illustrated by expectations that:

Entitlement theory says that everyone has rights but it is up to the government to protect those rights.

Positive law:

Civil disobedience is the remedy natural law proponents use to change positive laws.

Mortgages, security interests, and surety relationships are legal mechanisms created primarily to promote stability and flexibility in trade.

All of the following situations reflect a possible conflict of interest except:

Rights theory includes all of the following except:

The Nature and Sources of Law

The Court System and Dispute Resolution

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environment of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters